Why PayPal Shares Are Falling Today

PayPal Holdings Inc PYPL is trading lower Tuesday after the company announced worse-than-expected third-quarter revenue results and issued guidance below estimates. 

PayPal reported quarterly earnings of $1.11 per share, which beat the estimate of $1.07 per share. The company reported quarterly revenue of $6.18 billion, which came in below the estimate of $6.23 billion.

PayPal expects fourth-quarter adjusted earnings to be about $1.12 per share versus the estimate of $1.27 per share. The company expects fourth-quarter revenue to be in a range of $6.85 billion to $6.95 billion versus the estimate of $7.24 billion.

"The strength of PayPal’s two-sided platform and ubiquity in our core markets has set us up to grow at scale, expand our work with existing merchants and attract new partners," said Dan Schulman, president and CEO of PayPal.

Analyst Assessment: Multiple analyst firms lowered price targets on the stock following PayPal's financial results:

• Keybanc analyst Josh Beck maintained PayPal with an Overweight rating and lowered the price target from $335 to $325.
• Oppenheimer analyst Rick Schafer maintained PayPal with an Outperform rating and lowered the price target from $329 to $268.
• RBC Capital analyst Daniel Perlin maintained PayPal with an Outperform rating and lowered the price target from $322 to $298.

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PYPL Price Action: PayPal has traded as high as $310.16 and as low as $178.60 over a 52-week period.

The stock was down 5.76% at $216.20 at time of publication.

Photo: courtesy of PayPal.